QUESTION $1$ INCOME TAX AND DEFERRED TAXATION $[20$ MARKS$]$

$1\mathrm{.}1.$ Name and discuss transactional tax that is found in South Africa $(5$ marks$)$

$1\mathrm{.}2.$ The following information is provided to you, the financial accountant, with regards to FireKnife Limited which specialises in the manufacturing of motorcycle parts. They started their operations in year $2020$

$$ The profit before taxation in $2021$ amounts to R$6000000$

$$ The income tax expense for $2021$ and $2020$ was calculated as R$2100000$ and R$1550000$ respectively

$$ The balance owing to SARS for current taxation according to the statement of financial position is R$300000$

$$ The income tax for $2020$ according to the final tax assessment from SARS amounted to R$150100$

$$ Total payments made to SARS during $2020$ amounted to R$2600000$ including payments for the years of $2020$ and $2021$

$$ Capital profit of R$150000$ was realised from the sale of a building during $2021$ and also represents the capital gain as defined in current tax legislation.

$$ Dividend income of R$500000($non$-$taxable$)$ and a fine of R$100($non$-$deductible$)$ was realised during $2021$

$$ Total dividends declared $2021$ amounted to R$120000.$ The dividends tax rate is $15\%$ according to legislation.

$$ Income tax rate for $2021$ is $29\%$ on taxable profits and has remained unchanged since $2020$

No assessed capital loss was brought forwards. The capital gains inclusion rate for $2021$ is $50\%$ and has

Remained unchanged since $2020$

REQUIRED:

Prepare the general journals for the year ended $31$ December $2020$ and $31$ December $2021(15$ marks$)$